High Churn Rate, Sparkling the SIM Card Business
Indonesian Cellular Operators are facing a high churn rate subscriber. Telkomsel just write off around 4.4 million of its subscribers this year which is equivalent to 5% of its total subsribers. Meanwhile Indosat and XL have a greater number, namely around 12-13% of its subscribers.
The total number of the subsribers of this three biggest cellular operators in Indonesia are around 150 million subscribers. Then the total churn subscriber for these operators are just below 15 million subscriber, a big number for SIM (subscriber identification module) card business. If we also calculate other cellulars operator, the figure can reach 18 million. For your information, Indonesia has 11 cellular operator, 5 of them are using GSM-3G technology while the other 6 are using CDMA technology.
Many people blame the cheap starter pack is the main reason of high churn rate, not to mention subscribers which are unsatisfied with their current service provider. You can have a started pack for less than US$5 with the equal number of credit. So, the operators get nothing when a new subscriber register. On the other hand, SIM Card provider who gets benefits from new registered subscriber.
Cellular operators have to create a new strategies to lower down the churn rate. They just create the business to other party otherwise.
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